MtGox, the cryptocurrency exchange that filed for bankruptcy in 2014, has extended the deadline for rehabilitation creditors to register their payment preferences
MtGox, the infamous cryptocurrency exchange that filed for bankruptcy in 2014, has announced an extension to the deadline for rehabilitation creditors to register their repayment preference.
Nobuaki Kobayashi, the rehabilitation trustee, has launched a function for rehabilitation creditors to select a repayment method and register payee information on the MTGOX Online Rehabilitation Claim Filing System.
Originally, the deadline for selection and registration was January 10, 2023 (Japan time), but it has now been changed to March 10, 2023 (Japan time).
The extension will provide additional time for rehabilitation creditors to complete the selection and registration process.
According to the announcement, rehabilitation creditors who have not completed the selection and registration by the deadline will not be able to receive any of the repayments, including early lump-sum repayment, repayment for a portion of cryptocurrency rehabilitation claims in cryptocurrency, repayment by bank remittance, and repayment by remittance through a fund transfer service provider.
This extension comes as a relief for rehabilitation creditors who were struggling to meet the previous deadline. The extension also indicates that MtGox is moving closer to its rehabilitation plan, which has been in the works for several years.
UBS said in a report that creditors of the defunct cryptocurrency exchange are unlikely to destabilize the Bitcoin market with repayments.
The report noted that early adopters are likely to be “crypto believers” who will choose to be paid in the flagship cryptocurrency and keep it. While the report acknowledged that some early adopters could still choose to sell, it believes that the news that the repayments would be less concentrated could have been a factor in bitcoin’s resilience of late.